Elon Musk fans the world over have waited in anticipation for the unveiling of Tesla’s Model 3 vehicles. It is being touted as a car with an affordable price tag that will be marketable to families and bring electric vehicles into the main stream.
Potential issues loom
If Elon Musk is able to pull off this grand project, he will have marked a major accomplishment. Unfortunately, there are many analysts betting against him, and which good reason. One issue is that the number of cars that have actually produced so far is lower than expected. In March 2016, according to CNBC, Tesla allowed potential customers to place $1000 deposits to “pre-order” vehicles.
In just a month, 373,000 customers had put down a refundable deposit. For some customers, there may be a very long wait. For customers who placed their deposits after January of this year, the summer months of 2018 could potentially arrive before their vehicles.
Tesla’s projects have been plagued by myriad problems in the past as well. For example, its Model S and Model X SUV gained bad reputations after customers were confronted by doors that would not open and high-tech dashboards that would not function. Those cars were more expensive, ranging up to $100,000 and were catered towards a niche group of rich environmentalists, people who were primarily concerned with having sleek, fashionable electric vehicles.
Tesla is now marketing to a middle-class audience. The Model 3 has a starting price of $35,000, half the price of Tesla’s other luxury vehicles. This could potentially bring Tesla into the mainstream while bringing hundreds of thousands of customers to Tesla. However, mistakes like stuck doors and broken dashboards, when Tesla is marketing to a less forgiving middle-class audience could be potentially fatal.
Elon Musk is unlikely to be deterred by just a few issues, however. The millionaire is also the owner of SpaceX, a private space company looking to market commercial rides to outer space. In 2016 a series of space vehicles, including the Falcon 9 failed to launch, scaring away investors. Even so, SpaceX now has partnered with NASA and is looking stronger and more fit to the task than ever.
Tesla doesn’t stand alone
Many tech-watchers are comparing the release of the Model 3 to the release of the iPhone. They believe that this product could serve as an analog to Apple’s smartphone in its revolutionary effects on the electric Car Industry. Just like there were smartphones before the iPhone, there are other comparable electric vehicles on the market. The Honda Fit EV is just one of the many viable alternatives. However, just like Apple, Tesla has been able to stand out by using its celebrity status to build hype for the release of its product. It has also included services such as that will ensure that it is a complete product ecosystem. In doing so, Tesla has distinguished itself profoundly.
